Tallinna Kaubamaja            NEWS RELEASE                      05/26/2004



POSTPONEMENT OF AGM OF SHAREHOLDERS



The Management Board of Tallinna Kaubamaja AS hereby announces the

postponement of the regular annual general meeting of shareholders. The

updated date of the annual general meeting of shareholders is 21 June at 2

p.m. in the meeting room of Tallinna Kaubamaja AS at Gonsiori 2, Tallinn

(staff entrance at Laikmaa Street). The registration of participants will

be carried out from 1.45 to 2 p.m.



The reason for postponing the date of the meeting is a legal misconception

of the law during the planning process of the meeting. According to

Paragraph 294 of the Business Code Act and the Charter of Tallinna

Kaubamaja AS an announcement of the general meeting of shareholders has to

be made at least three weeks prior to the actual date. Our company

published the announcement in the newspaper "Eesti Päevaleht" on 5 May,

i.e. exactly three weeks prior to the actual date. According to more

specific data there is an interpretation of the law stating that the count

of the period starts with the day after the date when the announcement is

published.



The decisions of the meeting of shareholders, if carried out on the

initially announced date, will have no legal validity. This is why we

announce a new date for the meeting. The agenda will be the same as

initially planned.



The agenda of the regular annual general meeting of shareholders includes

approval of the Annual Report of Tallinna Kaubamaja AS for the year 2003,

profit allocation, selection of the auditing company and its remuneration,

recall of a member of the Supervisory Board and election of a new member

and amendment of the Charter.



The Management Board of AS Tallinna Kaubamaja proposes to the General

Meeting of Shareholders to amend the Charter and give the Supervisory Board

the right for three years to increase the share capital to be paid for by

additional funds. The purpose of the increase in equity is to finance

extension plans of Tallinn and Tartu Department Stores and pave the way for

further development of the Selver chain.



The candidate of the new member of the Supervisory Board is Mr. Gunnar

Kraft.





Raul Puusepp

CEO

+372 6 673 200